Saudi Arabia’s finance ministry said on Friday the kingdom’s fiscal position was strong and it had access to multiple export routes including the Red Sea, a week into the U.S.-Israeli war with Iran which has spread turmoil in the region.
“Economic activity across Saudi Arabia continues to operate normally,” the finance ministry’s spokesperson said in a statement that referred to “recent developments” but did not directly mention the conflict.
“We continue to assess economic and fiscal indicators on an ongoing basis, and current data confirm that our fiscal position and medium-term outlook remain solid,” the statement added.
Iran has launched strikes across the region in retaliation against the U.S. and Israeli attacks in an expanding conflict, though Saudi Arabia has been struck much less than other Gulf countries.
Oil prices have surged 20% since last Friday, and the attacks have slashed vital hydrocarbon exports via the Strait of Hormuz and halted output at facilities including Saudi Aramco’s biggest domestic oil refinery.
“Energy markets have responded to recent developments, with oil prices currently increasing,” the statement read.
“Our energy export infrastructure remains resilient, and the Kingdom has the flexibility to utilize multiple export routes, including through the Red Sea.”
The world’s top oil exporter registered a budget deficit in the fiscal year 2025 of 276 billion riyals ($73.54 billion), more than the expected deficit of 245 billion, which had been significantly revised upwards from initial estimates.
Its oil revenues in 2025 went down 20% from the previous year to 590 billion riyals.
(Reporting by Rachna Uppal and Yomna Ehab; Editing by Toby Chopra)